Harmony Biosciences: Wakix Outperformance and Milestone-Rich Pipeline Underpin Buy Rating and Favorable Risk-Reward

Analyst Ami Fadia of Needham maintained a Buy rating on Harmony Biosciences Holdings, retaining the price target of $42.00.

Ami Fadia has given his Buy rating due to a combination of factors tied to Harmony Biosciences’ core Wakix franchise and its broader growth outlook. The company’s fourth-quarter 2025 Wakix revenue modestly exceeded both internal and Street projections, supported by continued patient growth, which reinforces confidence in the durability of demand for the product. In addition, management’s 2026 sales guidance for Wakix came in meaningfully ahead of consensus at the midpoint, suggesting that underlying prescription trends and market penetration are tracking better than investors had anticipated. Fadia views this combination of outperformance and constructive guidance as a catalyst for the shares, with room for upward estimate revisions and improved sentiment around the near-term financial profile.
At the same time, she acknowledges adjustments in the development timelines but sees the pipeline as an important source of medium- to long-term value. While Phase 3 data for EPX-100 in Down syndrome and Lennox-Gastaut syndrome have been shifted into the first half of 2027, other programs remain on track or have clearer timing, including the mid-2026 readout for BP1.15205’s first-in-human study. The planned 2026 NDA submission for the GR formulation of pitolisant, following a successful bioequivalence study, and the newly communicated second-half 2026 Phase 3 data milestone in Prader-Willi syndrome add further potential inflection points. Overall, Fadia concludes that the combination of strong current execution with Wakix and a de-risking, milestone-rich pipeline supports a favorable risk-reward profile that justifies a Buy rating on HRMY.

In another report released on January 8, Truist Financial also maintained a Buy rating on the stock with a $45.00 price target.